Page 22 - On The Move - Volume 17, Issue 4

Any dealership can transform their loaner fleet from

a cost center to a program that drives profitability and

loyalty by identifying blind spots and friction.

By Russ Lemmer
President & Founder of Dealerware

utomotive loaner fleets typically are the third-highest item on a dealership’s profit and loss
Asheet, behind real estate and staff.

Driving down the costs of operating a loaner fleet is critical, however dealerships leave thousands of dollars on
the table each month that they could be recovering. Why? Honestly, it can be a hassle to try to get this money
back, but recovering the costs is less complicated than it may seem.

Any dealership can transform their loaner fleet from a cost center to a program that drives profitability and loyalty
by identifying blind spots and friction, and turning solutions into value for customers.

FIRST UP, FUEL
Dealerships predominantly choose from two refueling fee So, consumers’ preference for time over money is an opportunity
strategies: either refueling fees are eaten by the dealership, or for dealerships to present refueling fees as an added convenience
they’re weaponized in an attempt to incentivize service customers for customers who don’t have time to stop at the pump.
to refill loaner vehicles before returning them.
To make the most of this opportunity, dealers should match or
The truth about refueling charges is that, whether you think barely exceed local fuel prices and explain to customers that
refueling fees put CSI scores at risk or believe punitive fees they’d prefer loaners be returned with a full tank, but customers
will keep customers from wasting your time, you’re probably who don’t do so won’t be punished. This maintains customer
mistaken. satisfaction and trust.

Time and convenience are luxuries for consumers. Research Connected car services can simplify this process even further.
conducted in recent years by market intelligence firm GfK indicates Telematics devices take more precise fuel measurements. Digital
31% of consumers said they would prefer to have more time than interfaces provide customers with transparent information about
more money. It’s for this reason that high refueling fees don’t charges (and remove some contract friction in the process).
prevent customers from returning loaners with empty tanks. Dealerships can automate refueling charges for simpler billing.
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